points_of_parity_points_of_differentiation

The abundance of choices makes it tough for brands to compete, and customers to decide.

The first questions brand owners usually face during discussions with new customers, new distribution partners, or marketing agencies are:

“How is your brand different from X?”

“Why should I choose your brand versus Y?”

Why should I add your brand to my current offering?”

What are your brand’s differentiation points we can use to build an advertising campaign?

These can be tough questions to answer without an in-depth understanding of your brand’s points of parity and points of differentiation, an essential first step of any brand positioning project. Without a clear image of the market your brand operates in, its major players, and why your customers (should) consider your brand over competition, it is very difficult to gain visibility in your category.

This article aims to explain these two important marketing concepts, critical in the brand building journey: how to identify your brand’s points of parity and points of differentiation. Hopefully you will gain a better perspective on how to choose a strong brand differentiator that is meaningful enough to the consumer to choose your brand, and sustainable long-term.

Points of Parity Versus Points of Differentiation

We feel most comfortable in a familiar environment. Anything “new” that attempts to disrupt our current routine is usually met with reluctance, or outright denial. Hence the challenge brands have to attract new customers: without a clear strategy to ease their reluctance and peak their interest, customers will return to the brands they already know.

Points of parity are the “must-haves” of any brand to be considered a legitimate competitor in its specific category. Points of parity are the reasons consumers add your brand to the list of alternatives for consideration. These attributes are not brand differentiators, and should not be used as the key message in your advertising. However, before you work on identifying your competitive advantage, you want to make sure you have the points of parity covered.

Points of differentiation are the attributes that make your brand unique. It is your brand’s value proposition, its competitive advantage. The points of differentiation are the reasons why consumers should choose your brand over competition. These attributes must be consistently reflected in your brand slogan, and advertising.

Points of Parity and Points of Differentiation Examples

Automotive Industry-Points of Parity

Let’s assume you are in the market for a new car for your growing family. You would probably only consider car brands that are able to deliver on the following:

  • a dealership located within reasonable proximity to your location, where you can see the various models, and service your future vehicle.
  • availability of a demo model that you can test-drive.
  • a minimum 3-year comprehensive warranty.
  • multi-year financing and leasing options.
  • a firm delivery date.

You have just identified the points of parity in the vehicle sales industry. Failing to meet any one of the attributes above will remove the brand from your shopping list. For any vehicle brand that wants compete in a specific market, the list represents the basic expectations to be on the consumers’ radar.

Automotive Industry-Points of Differentiation

  • comprehensive warranty coverage beyond the typical 3 years, such as 5 year (Hyundai) and 10 years (Mitsubishi).
  • mechanical and technological benefits such as symmetrical all-wheel drive (Subaru) and performance electric vehicles (Tesla).
  • free vehicle maintenance for a specific time-period.
  • the ability to travel to the country of manufacture and see how your vehicle is made (Volvo Overseas Delivery Program).

Travel Industry-Points of Parity

You are ready to book your next vacation, and are looking at various options to spend your long-awaited time off. Your travel options will probably be narrowed down based on:

  • travel information (accommodation, points of interests, and the associated costs) that is clearly and transparently presented and can be used to make an informed decision.
  • availability on your desired dates.
  • total costs that fit your budget.
  • the ability to book online and make changes to your existing reservation.
  • a clear cancellation policy.

Travel Industry-Points of Differentiation

  • ability to make changes to your reservation for free.
  • flexible payment options.
  • personalized advice and support before and during your trip.
  • the possibility to cancel as close to the departure date as possible.

Professional Services-Points of Parity

The final example assumes you are looking for a service provider to help your business grow. Here are some criteria your initial contenders will probably have to meet:

  • have an informative website that provide an overview of their expertise and capabilities.
  • be responsive to your requests.
  • provide a comprehensive proposal that fits your budget.
  • are able to provide examples of their work and references.

Professional Services-Points of Differentiation

The winning firm will be the one that:

  • has expertise in your industry/market segment.
  • provides flexible payment terms.
  • went the extra mile in providing information that will help your decision.
  • offers flexible collaboration options.

How to Identify Points of Parity and Points of Differentiation

Identifying the points of parity and points of differentiation is industry specific. There is no generic rule that can be applied across the board. The process requires an in-depth knowledge of your market segment.

Luckily, a combination of technology and human interaction can provide a clear picture. Below are some research tools I use in my brand positioning projects:

  • Browse your competitors’ websites
  • Subscribe to competitors’ newsletters
  • Follow your competition, and industry influencers on social media
  • Perform online searches for keywords relevant to your industry
  • Setup Google Alerts for the same keywords
  • Use online survey to obtain feedback from customers and distribution partners
  • Purchase and review competitive products
  • Ask your sales force for feedback
  • Talk to your distribution partners
  • Attend trade-shows

For more details about these methods, check out my article “How to Perform a Competitive Landscape Analysis”.

The Meaningless Slogan Trap

I am sure these slogans sound familiar: “Our employees make the difference”, “Quality is our job number 1”, “We Deliver Great Customer Service”. While very popular, these slogans are often ineffective in differentiating a brand. That’s because they more often than not promote a brand’s point of parity instead of focusing on the points of differentiation.

Good employees, quality, and service are a given in almost any category. Is anybody expecting to survive and grow with bad employees, poor quality products and customer service?

If your company is using a slogan similar to the ones above, it’s probably time for a brand repositioning exercise. That is unless your competition is famous for not delivering what you are promoting (be it quality, service, good employees). Then your slogan makes perfect sense. Otherwise don’t waste your advertising budget promoting points of parity. Find out what attributes make your brand unique and build your communication strategy around them.

If you enjoyed this article don’t forget to check out the brand positioning tutorials page for more articles on how to build strong and differentiated brands.

Related Posts